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CMT Association CMT-Level-II - CMT Level II Exam

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Total 262 questions

Which of the following is NOT continuation pattern?

A.

Rising three methods

B.

Separating lines

C.

Tweezers

D.

Windows

Which of the following is a general rule for trading futures?

A.

Due to the fact that markets only trend 30% of the time, 100% of capital should be invested at all times

B.

The majority of capital should be committed to the strongest market since it is rare that more than two or more markets will experience a major move simultaneously

C.

Total amount risked on any single trade should not exceed 5% of equity

D.

At least 50% of total equity should be dedicated to the market group with the strongest trend

If 300 shares traded at a certain price which of the following conclusions cant be drawn from this given situation?

A.

Traders could determine the price at which supply and demand were equalized

B.

Traders would record four bars at that price

C.

Traders could determine the support

D.

Traders could determine the resistance zones

Which of the following is the short-term trading cycle that tends to influence most commodity markets?

A.

10-day

B.

12-day

C.

19-day

D.

28-day

Which of the following is a diversification technique in trading?

A.

Trade multiple securities in markets with high correlation

B.

Stick to a single trading system

C.

Balance risk across multiple markets and trading systems

D.

All of the above

What steps must analysts take in introducing new methods of technical analysis under the MTA Code of Ethics?

A.

All new techniques must be fully documented even if proprietary methods must be disclosed to do so

B.

New procedures must be documented as to procedure and rationale

C.

New procedures must be supported by adequate back testing confirmed by at least technician

D.

New methods need not be consistent with the accumulated knowledge of the field of technical analysis

Which of the following points represents a valid island reversal in the chart below?

A.

A

B.

B

C.

C

D.

None of the above

Which of the following is a true statement according to Elliott Wave Theory?

A.

A complete bull market cycle is made up of eight waves, three waves up followed by five waves down

B.

A trend divides into three waves in the direction of the next longer trend

C.

Corrections always take place in five wave patterns

D.

The two types of simple corrections are zigzags and flats

In a meeting with his firm's senior research analyst, George Powel, a proponent of the CFA Institute Research Objectivity Standards (ROS), stated that the key objective of the ROS is to create voluntary reporting of

research practices that promote independent and objective research to CFA Institute on an annual basis. With regard to his statements about the objectives of the ROS.

A.

he is correct.

B.

he is incorrect.

C.

He is correct about the voluntary reporting aspect.

D.

He is correct about the independent and objective research aspect.

Central tendency is:

A.

Statistical jargon for the typical outcome

B.

The midpoint of a trading range

C.

A popular Elliott Wave guideline

D.

A common pitfall of novice traders